eBook Calculator Entries for Selected Corporate Transactions West Yellowstone Ou

Question

eBook Calculator Entries for Selected Corporate Transactions West Yellowstone Outfitters Corpora during the current fiscal year are as follows: West Yelowstone Outiters Corporation manufactures and distributes leisure dothing. Selected transactions completed by an. 15. Split the common stock 4 for 1 and reduced the par from $120 to $30 per share. After the split, there were 800,000 common shares outstanding. Mar. 1. Dedared semiannual dividends of $o.25 on 100,000 shares of preferred stock and $0.07 on the 800,000 shares of $30 par common stock to stockholders of record on March 31, payable on April 30. Apr. 30. Paid the cash dividends. May 31. Aug. 17. Sold 40,000 shares of treasury stock at $38, receiving cash Purchased 60,000 shares of the corporation's own common stock at $32, recording the stock at cost. Sept. 1. Dedared semiannual dividends of $0.25 on the preferred stock and $0.09 on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $40. Oct. 31. Paid the cash dividends and issued the certificates for the common stock dividend Required: Journalize the transactions If no entry is required, select "No entry required from the dropdown and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 15. Split the common stock 4 for 1 and reduced the par from $120 to $30 per share. After the split, there were 800,000 common shares outstanding. Date Account Debit Credit Jan, 15

Explanation / Answer

Journal entries in the book of west yellowstone outfilters

Debit dividends

credit dividends payable

(being preference and equity dividends declared  

$81000

$81000

debit dividends payable

Credit Cash account

$81000

$81000

debit common stock

Credit Cash

$192000

$192000

debit cash

Credit treasury stock

$152000

$152000

Sep1 debit Dividends . $97000

Credit. Dividends payable $97000

Sep1 debit Bonus dividends $320,000

Credit share capital $240,000

Credit. Share premium $80,000

Oct 31. Debit dividends payable. $97000

Credit Cash $97000

Working notes

Calculation of 1 percent common stock dividends =800,000*1/100=8000

Date journal entry $ debit $ credit Jan 15 no entry is required 0 0 Mar1

Debit dividends

credit dividends payable

(being preference and equity dividends declared  

$81000

$81000

April

debit dividends payable

Credit Cash account

$81000

$81000

May31

debit common stock

Credit Cash

$192000

$192000

August17

debit cash

Credit treasury stock

$152000

$152000

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